A novel method of evaluating the business and investment climates of nations’ economies is being developed by the World Bank Group. Prior to the beginning of the new Business Enabling Environment (BEE) initiative, this collection of indicators will be used as a replacement for Doing Business. When BEE statistics become available, they may be used with these other current data sources to offer a variety of viewpoints on the business regulatory environment all over the world.
These alternative indicators relate to three phases that are influenced by the business climate of an economy: starting a business, running a business, and shutting down a firm. Some of the substitute projects include all three phases (WBG Enterprise Surveys).
Setting up a business
These metrics record early infrastructure, services, and registration as well as incorporation. They comprise metrics like new business density (WBG Entrepreneurship Database) and the length of time it takes to secure building permits (WBG Enterprise Surveys).
Maintaining a business
These metrics capture many facets of the business environment that businesses deal with on a daily basis. These include measures of the effectiveness of the power supply (World Economic Forum), the risk associated with tax policy (Economist Intelligence Unit), and the Logistics Performance Index for trade logistics (WBG Logistics Performance Index).
Closing a company
These metrics reflect the potential for company rehabilitation as well as liquidation. They include the EBRD’s assessments of bankruptcy and restructuring processes as well as national loan enforcement systems (European Banking Authority).
This compilation is provided solely for informational reasons. It contains both external and internal World Bank Group-generated indicators and does not indicate support for external indicators.
Alternative Resources
We acknowledge that a variety of factors influence how business-friendly an economy is. The new initiative does not attempt to gauge every component of a favorable business environment. Many of these features are already captured by existing indicators.
The following list of resources includes five categories that are very important for influencing a nation’s business climate. Over time, other data sources will be included.
Disclaimer: The resources on this page are simply meant to provide you with information. They contain both external and internal World Bank Group indicators, and they do not necessarily approve external indicators.
Business Traditions
Management of the World Bank Group decided to stop publishing the Doing Business report in September 2021. But as a repository of information and data, the Doing Business website is still accessible to the general public.
The Doing Business initiative, which was started in 2002, offered measurements of how well laws were being applied to businesses. During the course of the research, small and medium-sized domestic businesses were examined, and the policies that affected them were measured.
Five indicator sets and 133 economies were included in the inaugural Doing Business report, which was released in 2003. 2019 saw the publication of the final research, which encompassed 190 economies and 11 indicator sets.
A parallel initiative called Subnational Doing Business was created to document the variations in local business laws and how they are applied in various regions of the same economy. Over 80 economies, including China, India, Mexico, and Nigeria, have had almost 600 sites benchmarked by Subnational Doing Business since 2005.
Some Important Questions And answers about business-friendly environment
Q: What is a business-friendly environment?
A: A business-friendly environment refers to the conditions, policies, and practices that promote and support the growth and success of businesses. It includes factors such as favorable government regulations, infrastructure, access to capital, skilled workforce, and low barriers to entry.
Q: Why is a business-friendly environment important?
A: A business-friendly environment is important because it attracts investment, encourages entrepreneurship, and stimulates economic growth. It provides businesses with the necessary resources, opportunities, and support systems to thrive, which in turn creates jobs, increases productivity, and boosts overall prosperity.
Q: What are some key characteristics of a business-friendly environment?
A: Some key characteristics of a business-friendly environment include a transparent and predictable regulatory framework, low tax rates, efficient bureaucracy, access to financing and capital markets, reliable infrastructure (such as transportation and communication networks), strong intellectual property protection, and a skilled and educated workforce.
Q: How can governments create a business-friendly environment?
A: Governments can create a business-friendly environment by implementing policies that reduce bureaucratic red tape, simplify regulations, streamline business licensing procedures, lower tax rates, invest in infrastructure development, promote fair competition, provide incentives for innovation and investment, and offer support services for businesses, such as access to financing and training programs.
Q: What role does infrastructure play in a business-friendly environment?
A: Infrastructure plays a crucial role in a business-friendly environment. Good infrastructure, including reliable transportation networks, efficient logistics systems, access to affordable energy, and robust telecommunications, enables businesses to operate smoothly, reduces costs, facilitates trade, and enhances connectivity with customers, suppliers, and markets.
Q: How does a business-friendly environment attract foreign direct investment (FDI)?
A: A business-friendly environment attracts foreign direct investment (FDI) by providing an attractive investment climate for international businesses. This includes factors such as political stability, strong legal and regulatory frameworks, protection of property rights, ease of doing business, skilled labor force, access to markets, and favorable tax policies. FDI inflows contribute to economic growth, job creation, technology transfer, and increased competitiveness.
Q: Can a business-friendly environment benefit small and medium-sized enterprises (SMEs)?
A: Yes, a business-friendly environment can greatly benefit small and medium-sized enterprises (SMEs). SMEs often face challenges such as limited resources, access to finance, and regulatory burdens. A business-friendly environment that reduces these barriers and provides support for SMEs can foster their growth, encourage entrepreneurship, and contribute to job creation and innovation.
Q: Are there any potential drawbacks or challenges associated with a business-friendly environment?
A: While a business-friendly environment is generally beneficial, there can be potential drawbacks or challenges. For example, excessive deregulation without appropriate safeguards can lead to unethical business practices, environmental degradation, and social inequality. Additionally, striking a balance between business interests and the protection of consumer rights, labor standards, and public welfare can be challenging.
Q: How does a business-friendly environment contribute to job creation?
A: A business-friendly environment contributes to job creation by attracting investment, promoting entrepreneurship, and supporting the growth of businesses. When businesses thrive, they expand their operations, which leads to the creation of new job opportunities. Additionally, a business-friendly environment encourages innovation and fosters the development of new industries, further contributing to job growth.
